Ensure Accurate Taxes and a Bigger Paycheck in 2020 Using W-2 Tips From American Payroll Association
The 2019 Form W-2, Wage and Tax Statement, is due to all employees by January 31. This year’s form, used by employees to process their income taxes, will be more important than ever for employees to determine next year’s tax responsibility and if they’re overpaying their taxes each payday.
The American Payroll Association, the nation’s leader in payroll education, shares five W-2 tips that can ensure your W-2 form is accurate and, perhaps help you give yourself an instant raise.
- Don’t Overpay Your Taxes.Your 2019 Form W-2 contains critical information to help you determine if you need to complete a 2020 Form W-4, Employee’s Withholding Certificate. Adjusting your W-4 can result in fewer taxes taken from each paycheck, giving you an instant raise. Complete a “paycheck checkup” using your Form W-2 to fill out the IRS’s Tax Withholding Estimator.
- Request All W-2s.If you worked at more than one job in 2019, you should receive a Form W-2 from every employer you worked for throughout the year. If you haven’t received your W-2 by February 5, contact the company’s payroll department to request a “reissued statement.”
- Compare Your W-2 to Your Final 2019 Paystub.Items to review on the Form W-2:
- Box 1 will differ from your final 2019 paystub year-to-date gross pay if you participated in a 401(k) or other employer-sponsored savings plan.
- The Box 3 total should not exceed $132,900– the 2019 social security wage base.
- Boxes 1, 3, and 5 will be different from your final 2019 paystub year-to-date gross pay if you used pre-tax dollars to pay insurance premiums, transit benefits, or to contribute to flexible spending accounts.
- Ensure Your Social Security Number (SSN) Matches Your Social Security Card. Your name and SSN on the Form W-2 must match the number on your social security card to receive the social security benefits to which you are entitled. If this is not the case, contact your employer’s payroll department for a corrected W-2.
- Check for Tax Credits. You may qualify for thousands of dollars from the Earned Income Tax Credit. Read the back of the Form W-2 Copy B to determine your eligibility.